The figure below displays the relationships between hourly wages w and a skill variable x for blacks and whites. The average values of the skill variable are x=8 for blacks and x=12 for whites.

A) What are the average hourly wages of blacks and whites?

B) What are the black-white wage ratio and wage gap?

C) Martin, who is black, has the skill of the average white worker. What is his hourly wage? How does his wage compare to the wage of the average black worker and the wage of the average white worker?

D) Woody, who is white, has the skill of an average black worker. What is his hourly wage? How does his wage compare to the average wage of blacks and the average wage of whites?

E) Standardize the comparison to compute a measure of discrimination (in dollars per hour) for workers with 10 units of skill.